TaxTMI 
TaxTMI 
2021 (2) TMI 787
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....Pvt. Ltd. (hereinafter called the 'Corporate Debtor') on the ground, that the Corporate Debtor committed default in making payment to the extent of Rs. 2,70,00,000/-, under Section 7 of Insolvency and Bankruptcy Code, 2016 (hereafter called the 'Code') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The Petitioner had advanced a total sum of Rs. 2,70,00,000/- (Rupees Two Crores Seventy Lakhs only) to the Respondent as an unsecured, short-term interest-free loan from his own fund to avoid shortfall in fund flow during crisis. The amount advanced as under: Sr. No. Date on which the amount was advanced Amount advanced 1 16.02.2016 Rs. 30,00,000/- 2 26.02.2016 ....
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.... the Corporate Debtor failed to repay the aforesaid dues despite of receiving the said Demand Notice. 6. Thereafter, the Applicant issued another notice dated 27.02.2019 calling upon the Respondents to repay the dues along with interest at the rate of 21% per annum, in response to the above notice the Respondent has issued reply dated 07.03.2019, no further reply was received from the Respondent. 7. Further it is submitted that the Counsel for the Petitioner that the loan amount is an admitted debt owing to the fact that the receipt of the amount of Rs. 2,70,00,000/- as an unsecured, interest free loan has never been disputed by the Corporate Debtor. Infact the same amount has been confirmed by the Corporate Debtor by issuing the conf....
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....y of journal voucher in FY 2010-11 was received back as borrowing in form of unsecured loans. The said is clear from the table of payment and borrowing above. Under no circumstances, money lend by Mr. Dinesh Changela, was from free sources, nor the said money was used for any purposes of business, other than converting the sundry creditors liability to loan liability. g. Also, as per foreign avoidance tax compliance Act, which is compulsory for every non-resident from 1st January 2016 onwards, money shown as loan should have been part of FATCA disclosure in UK Income Tax and also in Indian Income Tax. In absence of any information of Mr. Dinesh Changela we are not in position to comment on this matter. h. Mr. Dinesh Change....
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....inancial debt" means a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money and includes - (a) money borrowed against the payment of interest; (b) any amount raised by acceptance under any acceptance credit facility or its de-materialised equivalent; (c) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; (d).......................; (e) ..........................; (f)...........................;" 11. It is the contention of Respondent that there is no stipulation of interest in the amount alleged to have been advanced by the Petitioner to the Corpor....
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....yans Realtors Private Limited & Anr. .Appellants Vs. Saroj Realtors & Developers Private Limited Company Appeal (AT) (Insolvency) No. 311 of 2018, held as follows: "From the record, we find that though the Appellants by its resolution dated 16th May, 2013 decided to grant unsecured loan to 'Saroj Realtors and Developers Private Limited' with 24% interest payable annually and for return of the principal amount along with interest on or before 31st March, 2016, but the Board of Directors of the 'Corporate Debtor' in their meeting held on 29th March, 2014 decided to accept the amount as 'interest free unsecured loan'. From the aforesaid decision of the 'Corporate Debtor', we find that the 'Corporate Debtor' never accepted to take loan....